The UK's number one retailer is understood to be gearing up to offer big-ticket furniture items, such as dining tables and cabinets, on its Tesco.com web site.
One source told Retail Week that Tesco has approached furniture buyers ahead of a planned launch next year.
At the moment, Tesco's furniture offer is limited to seasonal items such as garden sets. The grocer considers Tesco.com its 'store without walls', enabling it to offer bulky product categories such as white goods that it cannot fit in-store.
Tesco played down the move, saying it had no specific plans, but said: 'We are always looking at new products.'
In furniture, non-specialists such as Argos, B&Q and Next have been making all the running. In the past five years, non-specialists have increased their market share twice as fast as specialists and account for more than a third of the market, Verdict research showed.
Verdict senior analyst Gavin Rothwell believes Tesco's entry will not be easy. He said: 'It is difficult to sell furniture online, because consumers want to look and feel the product. Tesco will clearly have outstanding value. They've got to convince consumers of quality and suitability of product.'
However, he said Argos has made furniture work, because of its brand heritage and value stance. Verdict predicts that ARG, which comprises Argos and Homebase, will overtake market leader MFI this year.
Meanwhile, Tesco plans to expand its Malaysian chain, which is 30 per cent owned by local conglomerate Sime Darby, from 10 stores to between 25 and 30 over the next five years. Local reports suggest the investment would be up to£350 million.
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